Indian equities are expected to continue their stellar 2023 performance into the current year with the NSE Nifty 50 likely to touch 22,500 by end-December 2024, according to Citi Research.
The research firm forecasts the benchmark Nifty's earnings per share to be 14% by the next financial year. In 2024, it prefers large caps over mid and small caps.
Strong domestic inflows may continue to aid mid and small caps' performance, but the risk-reward ratio is seen better in large caps, Citi said.
In large caps, Citi is 'overweight' on public sector banks, utilities, defence and infrastructure.
Looking Back At 2023
Investors preferred riskier assets like emerging markets' stocks to developed markets' equities, which helped Indian equities post their best performance in 2023, according to Citi.
Indian equities gave returns equal to those of developed markets and outperformed their peer markets.
In the latter part of the year, domestic inflows continued to support Indian benchmark indices' performance.
In sectors, auto, healthcare and industrial outperformed benchmark indices, while financials, utilities and metals underperformed.
Net inflows from foreign institutional investors sharply rebounded last year compared to 2022. India received a net FII inflow of $20 billion in 2023.
Citi's Top Picks For 2024
Banks & Diversified Financials
HDFC Bank Ltd.
ICICI Bank Ltd.
IndusInd Bank Ltd.
SBI Life Insurance Co.
Industrial Capital Goods
Larsen & Toubro Ltd.
Bharat Electronics Ltd.
Adani Ports and Special Economic Zone Ltd.
Materials
UltraTech Cement Ltd.
Pharmaceuticals
Sun Pharmaceutical Industries Ltd.
Apollo Hospitals Enterprise Ltd.
Telecom
Bharti Airtel Ltd.
Energy
GAIL (India) Ltd.
Reliance Industries Ltd.
Utilities
NTPC Ltd.
Auto & Transportation
Maruti Suzuki India Ltd.
Eicher Motors Ltd.
RECOMMENDED FOR YOU
.jpeg?rect=0%2C0%2C3500%2C1969&w=75)
PNB Share Price Declines As Morgan Stanley, Citi Remain Bearish Post Q1 Update
Jul 03, 2025
Stock Recommendations Today: IndiGo, Dr. Reddy's, Tech Mahindra, Pharma On Brokerages' Radar
Jun 26, 2025
HDFC Bank To Face NIMs Pressure In H1 FY26, Says Citi
Jun 16, 2025
Oil Firms Well-Positioned For Upside With Crude Expected To Be Between $60-70, Says Citi
Jun 03, 2025
POPULAR